Agenda item

To submit a report by the Treasurer in relation to the above.

Submitted – a report by the Treasurer in relation to the above.

The Treasurer report that over recent years, the Trust has awarded larger grants as well as small grants to organisations working on Anglesey.  In previous years grants were awarded on a case by case basis as requests were made to the Trust but in January 2016 a more formal process was introduced.  A summary of the larger grants awarded recently was included within the report.  The Treasurer said that a number of other organisations have now come forward asking how they can apply for larger grants, and questions have been asked regarding eligibility of grant applications to be used to cover running costs and if an organisation had received a small grant previously did this stop them from making an application for a larger grant and vice versa.   If it is the Trust’s intention to make annual awards of larger grants by using the growth in the capital value of the investments then a more formal, clearly defined process is required to ensure that grants are awarded in a fair and equitable manner, where the opportunity is open to all. 

In 2016 a sum of £200,000 was allocated by the Trust as the sum available for larger grants.  The decision was taken at a full meeting of the Trust based on a recommendation made by the Treasurer who had been in consultation with the HSBC Investment Managers.  The figure was based on allocating 20% of the expected growth in the capital value of the fund during 2016.  In order to allow sufficient time for a formal application process to be undertaken the decision as to the amount available for larger grants needs to be taken earlier in the financial year.  At its meeting held on 27 January, 2016 the Trust resolved that a decision as to the sum available each year for larger grants is delegated to the Investments and Contracts Committee.  It is proposed that the decision is taken at the November meeting of that Investment and Contracts Committee each year based on a recommendation from the Treasurer in consultation with the HSBC Investment Managers.  

The Treasurer stated that no formal standard legal agreement has been drawn up and agreed by the full Trust; a draft legal agreement was attached to the report as Appendix 1 which sets out what the grant funding should be used for, what performance targets have been set, how the project will be monitored and sets out the rights of access for the Trust and allows for the recovery of the grant should it be deemed necessary to do so.  It was noted that some parts of the agreement will change for each grant awarded.  He noted that the Trust requires security in respect of each individual grant, in order that the grant can be recovered from an organisation should the need arise.  However it was emphasised that the level of security can differ which was highlighted within the report. 

For smaller grants, the monitoring of compliance with the grant conditions rests with an Officer within the Lifelong Learning Services assisted by staff of the Finance Service.  The monitoring work for these smaller grants is normally straight forward and a visit may also be undertaken to confirm that the assets purchased are still in the applicant’s ownership.  However, projects funded by larger grants are more complex and may require scrutiny of the applicant’s accounting records and may require monitoring over a longer period as the funded project progresses.  The Treasurer noted that a decision is required as to whether the Trust needs to fund a resource in the short term to monitor and administer the larger grants afforded by the Charitable Trust.

Following deliberations by Members of the Trust it was RESOLVED :-

·           To delegate the decision to the Investment and Grants Committee to decide as to the level of funding available to fund the larger grants in November each year;

·           To invite applications for larger grants from organisations by means of public advertisement in local newspapers and the Council website,  commencing in November with a closing date of late January;

·           That the applications for larger grants be considered by the Regeneration Committee who will make recommendations to the full Trust in March each year;

·           To confirm that organisations can make applications for assistance with running costs but the organisation must be able to clearly demonstrate in their application how the organisation will ensure the future financial viability of the project once the funding from the Trust ceases;

·           That an organisation that has previously received a small grant can apply for a larger grant but an organisation cannot receive a small grant and a large grant in two consecutive years and that only one small grant and one large grant will be awarded in any rolling five year period;

·           That the Trust accepts the standard grant agreement and delegates to the Council’s Monitoring Officer and Head of Function (Resources)/Section 151 Officer the ability to amend the agreement as required to meet the individual circumstances of any grant;

·           That the Trust delegates the power to the Council’s Monitoring Officer and Head of Function (Resources)/Section 151 Officer to determine the level of security required with each individual grant awarded;

·           To delegate authority to the Chair of the Charitable Trust and the Treasurer with regard to the funding costs of additional short term resources to assist in the monitoring of the 10 existing grants awarded and to deal with any further grants awarded pending the decision on the future governance of the Trust;